Wow, how compelling is that for a title of an article? I mean, doesn’t everyone want passive income? Isn’t that the holy grail, the promised land and the hopes and dreams of every Internet entrepreneur and would-be professional blogger?
Well maybe not, but let’s face it, we all want passive income and we all want to hear about opportunities to create it. I certainly do.
As you put into action techniques to make money online you begin to realize how truly NOT passive most ways of making money on the Internet are. In fact, I am yet to come across one income method that really is passive – and by that I mean pure passive. You set it up, walk away and it keeps making money.
True, there are systems you can set up that are low maintenance. You can even build businesses and have other people run them, but if you take stock in reality, even the best business models require you to do something. You still need to check in every now and then to make sure your employees are doing what they are supposed to.
Perhaps you don’t have employees and run a pay per click affiliate marketing business as a solo professional, sitting at home setting up AdWords campaigns for a living. Unfortunately, even the best pay per click artists still have to check on their campaigns now and then, so out the door with passive income.
Blogging as we know is not passive – far from it for most bloggers. The average blogger that actually makes money from it does it only when they perform certain actions. If you don’t write, then you don’t get paid.
Passive income is hard to generate for one reason – the world is dynamic. Human beings, some who work with you, some who you compete against, are dynamic, and because of that, if you are to do business, you must be dynamic. The only way to respond to dynamism and succeed, is to be dynamic yourself, and therein lies the work – and the end of any chance for passive income.
In order to react to a constantly changing environment, you must constantly change yourself. Changing takes work, that’s why it’s so hard to find ways to make money that are passive – sustainability requires change.
How Can A Blog Post Become Passive Income?
Today I completed Blog Mastermind Lesson 22. All modesty aside, I think it was one of the best lessons I have produced so far because it covers a topic I know well, that most bloggers don’t – affiliate marketing.
As I was writing the lesson I realized just how complex the structure of the system I use to make money with my blog is, yet also how effective it can be once it is set up. I won’t explain everything here – it took me more than four thousand words to explain all the parts to my students in Blog Mastermind – but thanks to writing it out in detail I came to a realization. If done right, affiliate marketing on a blog can almost be passive income.
I say almost because in truth you still need to do something in order to keep sales coming through. That something is usually write new content to keep the blog active. Without activity, eventually the flow of traffic will cease. It might take a long long time, especially for blogs in a high authority position with firm rankings in the search engines, but eventually, a blog with no new content stream will die…at least I think it will (I often wonder whether a blog like Steve Pavlina’s would ever die given the eternal nature of his blog posts – I think the search engines and all those incoming links might continue to send him traffic for a long, long time).
How My System Works
I use a combination of writing review articles, referencing the reviews in other blog articles, highlighting the reviews in a specific blog page, search engine optimization and email list marketing, to make the system work.
It goes like this –
- You write a product or service review using a format designed to educate and sell (the selling part is with an affiliate link for the product of course). Writing reviews like this is not an easy task, but once done, the review is an asset – an income producing blog article.
- After writing the review, you send a broadcast to your email list, hopefully driving a rush of initial sales. Usually the email broadcast combined with the natural peak attention period new blog articles go through when they are just released, results in the largest chunk of affiliate sales.
- You add the email to your newsletter sequence, so at some point in the future every person who joins your email list will be notified of the review. This is where the first part of the passive income is generated. Long after the review is written and the email is first broadcast, new subscribers are still exposed to it, driving a consistent, albeit small stream of sales (this will vary of course based on the responsiveness of your list).
- Your review is indexed in the search engines, and provided you do a few smart things with how you structured the review, you continue to receive new visitors to the review from search engine results. This is another point where passive income is generated.
- Listing the review in your resources page and referring back to the review in future blog posts also serves to bring more traffic to the review and thus hopefully more affiliate sales too.
Although there are multiple facets to this approach and success depends on a lot of other variables, like whether you manage to build a popular blog, gain search engine authority and build an email list, if you tick all the boxes, this is an amazing formula for near-passive income from blogs.
I realize my description of the system may be somewhat abstract, especially if you are new to blogging and email list building. If you want a more detailed description, where I go through every step, you have two options:
1. Join Blog Mastermind, where in Lesson 22 I breakdown the system in a lot more detail, or…
2. Sign up for my affiliate blogging email list by entering your details below, then wait for news on further study materials on affiliate blogging, which is a concept I discussed in-depth in this recent article – The Secret To Big Profits Selling Affiliate Products From Your Blog.
If you enjoy the process of blogging, then using certain blog posts as affiliate income sources, some passive, some active, is by far one of the best to monetize a blog.
Here’s to your blogging success,
Yaro
Blogging Longterm
Hi Yaro, this is really a great post to read. I’m building my wealth so I can achieve financial freedom, so passive income is really important for me As your Blog Mastermind student, I really can’t wait to listen your lesson 22 about affiliate marketing and how to build up some kind of passive income for myself. 🙂
Yaro – great post since that is what most of us are definitely after – less maintenance with more return.
An interesting extension of the review is to use a product or service over a number of weeks and post new updates with results on a daily or weekly basis giving more content and keeping people tuned in longer.
Of course, if the results are demonstrable through video, that’s a great way too since video gives you many more avenues of exposure such as YouTube, Metcalf, etc…
Jeff
Hi Yaro
Very informative,and useful information on the subject of passive income.Something we all work hard on to acheive.
Every bit of help along the way is most appreciated.
Thanks
Steven
Hey Yaro. I really love your posts because they’re so consistent and complete!
I believe there are passive jobs on the net. Sometimes you have to work hard in the beggining, but then, the system goes by itself.
This a great post Yaro. I have tried my hand at list building beofe and wasn’t too successful. It was to not having much time to devote to it so I decided to give it a skip and concentrate on my blog.
I have been blogging for nearly 3 months now and trying to do other online ventures at the same time. I was rushing into things. I decided that I would just concentrate on my blog. If I get enough visitors to my blog I could always place a sign up form and maybe try list building then.
Mike
Being a member of your Blog Mastermind community Yaro I find this a truly fascinating and challenging prospect. Using your techniques I am sure we will get there and to all others, join up now!
Hi Yaro,
Awesome and thorough post. I love the amount of detail you cover in your posts.
As a student of Blog MasterMind I’m heartily looking forward to lesson 22.
Great post Yaro, I to am a Blogmastermind student I can’t wait for Lesson 22 take me there now!. A long way off though as I am only up to lesson 3 and really enjoing you work. I have only just put up my first blog in the first 2 lessons.
You make it so easy Yaro, damn you. Passive income the “Holy Grail” as they say.
Yaro,
Robert Kiyosaki already covered “passive income” with a level of expertise (aka effective simplicity) that is difficult to rival.
While you could say you’re targeting a different audience, the bottom line remains the same – when you talk about “passive income”, you should talk about it in the context of SCALE.
Let me provide you an example:
The kind of passive income you described as elusive is only classified as elusive because you described it in a non-dynamic way. You said that it was difficult to find passive income from which you could truly walk away and have it keep making money.
You know what, this is too lengthy to put here. I’m just going to blog it and give you the link love. But I’m glad you wrote this because it represents yet another blindspot that could use a spotlight shone on it.
Sam
I would agree that the idea of passive income may be a bit unclear to some people. You do have to do something at some point. However, once to create something online, let’s say a site about X, you can monetize with ad revenue…at least until the content gets old and you’ll have to repeat the process again.
Bob
http://www.entrepreneurideaguide.com
In reality, passive income is not really passive. There is no perfect business model yet invented where you can leave it after setting-up and it delivers yu the income you expected.
Regardless of business model, any business follows the natural order of things: you till the ground, plant the seed, water it, prune it from time to time, then comes the harvest. But even in this order of things, since the business (market) environment is dynamic and is changing fast, there si still no guarantee.
Yaro…
Thanks for the great post. I have been working really hard at understanding Blogging in nature and I really hope to monetize as I go. I am also really excited about my wife starting out. Which reminds me. I could really use someone that can design WordPress Templates for her blog. Anyways… we are seriously going to have a close look at Blog Master Mind. Thanks again!
Guy
Hi, Yaro. I just write a article about passive income and financial freedom but I find your article is much better. Thanks for your tips !
You know Yaro, it’s so refreshing to hear that “passive income” doesn’t really exist. A lot of so-called-gurus are trying to make us believe that you can build a site in a few days…do a little SEO and then watch the cheques come in.
You are correct it does take work and it does take a constant and regular flow of high quality content.
I’m only now starting to play with affiliate programs and I’m looking forward to mastering this income stream more in 2008.
Here’s another passive (or sort of passive) income you didn’t touch upon: ads on your site. I’m not talking about google adsense ads, but ads from advertisers. That’s a great way to benefit from the increase in your traffic.
You will need to have a branded site, but the pay out is well worth in and in the long run and can only grow.
Thanks for a great post Yaro!
Gisele
http://www.mybeautymatch.com
Thanks Yaro for an interesting article. I agree that there is no such thing as passive income, as this word has been used too loosely. But if there are ways to come close to it, well, we will definitely work towards that. I just signed up your affiliate blogging email.
http://www.peterleehc.com/blog
Great article, Yaro! I think we all would like to have truly “passive” income. But, like everything else in life, your efforts ultimately determine your results.
Great indeed. I have some PHP scripts that I’ve written, and I’ll try to use them as an initial demo, just to see how traffic increases (or not), and learn all the steps as I should.
After that, I will try it with some paid reviews, just to see the traffic spiking and money flowing.
Great post Yaro, been looking for something like this for some motivation. Will use your techniques in the coming weeks, bookmarked this page ;).
Passive income is not really passive as a degree of work is needed to get whatever it is you want.For everything in this life,there is a period of planting,tendering and harvesting.
All in all,your tips rock,and I must say I have gained a lot from your affiliate blogging tips.Keep more of such coming!
Hi Yaro,
Your post is helpful and I agreed that it is not totally true that you will get passive income from blog.
You still need to be active in your blog to earn your income.
Hey Yaro,
I had learn something from your blogging tips. Your post is great and really enlighten me about earning passive income from blogging.
I enjoyed reading your article on earning from selling affiliate products.
I agree with you to a degree, but feel like you guys really should read the ‘Four Hour Workweek’ by Tim Ferriss
The holy grail indeed. The best idea I know of to recieve an as close to as possible passive income (on the net anyway) is to train affiliate marketers. Several affiliate programs have two tier payment systems so in thoery if you can train 20-30 successful affiliate marketers who sign up under your name you can get a passive income off thier hard work. But you still may need to educate and motivate them to continue to work hard. – Adam
I have posted a few times about the idea of passive income. Real estate investing is a much applauded form of ‘passive income’ in the modern sense. If you own properties, and rent them out, you will get rent checks coming in month after month, right? Right, but you still have to go out and locate the tenants, take care of utility issues and upgrades, etc. The idea of passive income is not that you have to completely do NO work, but the idea that when you set up a certain system, most of the day-to-day tasks are on auto-pilot. If you post everyday for 3 years straight, you will still get traffic in from the search engines, Yaro. As long as the ads are still on your site you will receive the passive income. This is your ‘system’. The idea of passive income is that so which you have the freedom to do something when you want to do it and you don’t have to give up working hours to go do that thing AND the money will still keep coming in. This can only happen if you set up your system.
MLM-ers preach passive income as their means for recruiting others. If you don’t put the calculated time, effort, and grueling hours into setting up your ‘system’, then you will not succeed. Passive income, I feel, is one of those subjective topics.
Bottom line is, you still have to work, do your research, and put your time in to make money. Some systems are just better than others!
http://entrepreneursjournal.wordpress.com
Hi Yaro,
This is a great post and thanks for sharing your knowledge on how to make passive income
Amazing
Kevin Kavanagh
Thanks Yaro
Steve Pavlina is a great blogger but I wonder how he makes money?
He doesnt focus on anything specific and just comes up with random articles.
Hello Yaro,
Thanks for this great article . I believe in passive income. But it takes time, efforts and lot of patience.
Thanks for sharing your knowledge.